Decoding OSRA: Section 13. Enforcement of Reparation Orders
Introduction
We’re still only beginning to see how the recent and ongoing changes to U.S. shipping law will affect businesses’ imports and exports as well as carriers’ and other industry stakeholders’ operations within maritime shipping. At Universal Cargo, we want to help shippers know how law changes will affect them. What exactly does the Ocean Shipping Reform Act (OSRA) say and do? This blog series goes through it section by section, so you can see exactly what our lawmakers changed in the U.S. Code dealing with shipping.
We’ll give you the OSRA text; the text of the U.S. Code, usually in Title 46, before and after its amendments; and consider what those changes mean for U.S. importers and exporters.
Previously covered in this series:
- Series Introduction & Quick Coverage of Section 1
- Section 2
- Section 3
- Section 4
- Section 5
- Section 6
- Section 7
- Section 8
- Section 9
- Section 10
- Section 11
- Section 12
Obviously, that means today we’re covering Section 13 of OSRA. Let’s see exactly what it says and changes…
Quick Overview
Like a nice cabernet sauvignon with a filet mignon, Section 13 of OSRA pairs nicely with Section 8. Actually, make that a light pinot noir because Section 8 is another short section, not nearly full-bodied enough to be a cab. And, of course, we’re talking about shipping law here, so it’s nowhere close to as enjoyable as red wine and steak. However, it is still pretty good for shippers. Sticking with the simile, Section 8 would have been the main course whereas Section 13 is what you put with it to complete the meal.
Section 8 added refunds to penalties the Federal Maritime Commission (FMC) can assess against violators of U.S. shipping code. Now Section 13 adds the refunds to reparations that violators can be enforced to pay should they not comply with such orders from the FMC. Thus, shippers can go to a district court to force carriers to pay them refunds awarded by the FMC.
Section 13 Text
SEC. 13. ENFORCEMENT OF REPARATION ORDERS.
Section 41309 of title 46, United States Code, is amended--
(1) in subsection (a), by striking ``reparation, the person
to whom the award was made'' and inserting ``a refund of money
or reparation, the person to which the refund or reparation was
awarded''; and
(2) in subsection (b), in the first sentence--
(A) by striking ``made an award of reparation'' and
inserting ``ordered a refund of money or any other award
of reparation''; and
(B) by inserting ``(except for the Commission or any
component of the Commission)'' after ``parties in the
order''.
Original Title 46 Text
§41309. Enforcement of reparation orders (a) Civil Action.—If a person does not comply with an order of the Federal Maritime Commission for the payment of reparation, the person to whom the award was made may seek enforcement of the order in a district court of the United States having jurisdiction over the parties. (b) Parties and Service of Process.—All parties in whose favor the Commission has made an award of reparation by a single order may be joined as plaintiffs, and all other parties in the order may be joined as defendants, in a single action in a judicial district in which any one plaintiff could maintain an action against any one defendant. Service of process against a defendant not found in that district may be made in a district in which any office of that defendant is located or in which any port of call on a regular route operated by that defendant is located. Judgment may be entered for any plaintiff against the defendant liable to that plaintiff. (c) Nature of Review.—In an action under this section, the findings and order of the Commission are prima facie evidence of the facts stated in the findings and order. (d) Costs and Attorney Fees.—The plaintiff is not liable for costs of the action or for costs of any subsequent stage of the proceedings unless they accrue on the plaintiff's appeal. A prevailing plaintiff shall be allowed reasonable attorney fees to be assessed and collected as part of the costs of the action. (e) Time Limit on Bringing Actions.—An action under this section to enforce an order of the Commission must be brought within 3 years after the date the order was violated.
Amended Text
§41309. Enforcement of reparation orders (a) Civil Action.—If a person does not comply with an order of the Federal Maritime Commission for the payment of a refund of money or reparation, the person to which the refund or reparation was awarded may seek enforcement of the order in a district court of the United States having jurisdiction over the parties. (b) Parties and Service of Process.—All parties in whose favor the Commission has ordered a refund of money or any other award of reparation by a single order may be joined as plaintiffs, and all other parties in the order (except for the Commission or any component of the Commission) may be joined as defendants, in a single action in a judicial district in which any one plaintiff could maintain an action against any one defendant. Service of process against a defendant not found in that district may be made in a district in which any office of that defendant is located or in which any port of call on a regular route operated by that defendant is located. Judgment may be entered for any plaintiff against the defendant liable to that plaintiff. (c) Nature of Review.—In an action under this section, the findings and order of the Commission are prima facie evidence of the facts stated in the findings and order. (d) Costs and Attorney Fees.—The plaintiff is not liable for costs of the action or for costs of any subsequent stage of the proceedings unless they accrue on the plaintiff's appeal. A prevailing plaintiff shall be allowed reasonable attorney fees to be assessed and collected as part of the costs of the action. (e) Time Limit on Bringing Actions.—An action under this section to enforce an order of the Commission must be brought within 3 years after the date the order was violated.
Observations on Section 13
Because of how short and straightforward Section 13 is, for me to go through it line by line would be repetitive and redundant. Sorry for the old dad joke there. However, there is something of note beyond adding refunds to reparations as something that is enforceable when the violating party does not comply.
After two amendments adding refunds, there’s a third amendment that adds the parenthetical “(except for the Commission or any component of the Commission).”
This exception of the FMC makes it explicit that the Commission cannot become one of the defendants in cases where plaintiffs are seeking enforcement of money awards the FMC ruled the plaintiffs should receive. Lawmakers made a clear protection for the FMC here. Shippers can’t say to the FMC, “You awarded us this money and the carriers won’t pay, so you give us our reparations or refunds in the meantime.”
The government won’t be held responsible for paying plaintiffs who lost money or were damaged by someone violating shipping law against them.
Conclusion
Section 13 returns to the idea of refunds of money when shippers or other parties are in a situation like having been charged unfair detention or demurrage fees. That’s not the only situation Section 13 could apply to, but it is one of the main things lawmakers focused on while writing OSRA.
With Section 13, if a shipping law violator does not comply with an FMC order to refund money, that violator can be taken to court for the enforcement of the award. Section 41309 of Title 46 of the U.S. Code, which Section 13 of OSRA amends, already granted this enforcement for reparations the FMC awarded to complainants.
Additionally, Section 13 protects the FMC from being added to the defendants in seeking award enforcement in court.
Now, there may be something you notice in Section 13 of OSRA that I didn’t. Or there’s another take you have on it that I didn’t consider. If there is, please share it in the comments section below.
Stay tuned for when Decoding OSRA continues, looking at Section 14….
